Lianhua Supermarket Holdings Company says in its 2006 performance report that it will open 400 new stores this year and 80% of them will be located in eastern China.
The report shows that Lianhua Supermarket's business revenue increased from the previous year's RMB14.313 to RMB16.447 in 2006, but due to distribution cost increase, the company's profit dropped by 10.7% to RMB230 million compared with that of 2005.
According to the report, Lianhua Supermarket opened 107 new stores in 2006, and 78 of which are located in east China. By the end of 2006, Lianhua had a total of 3716 shopping centers, supermarkets and convenience stores, and 81.08% of them were located in the eastern part of the country.
Sun Ming, director of the General Manager Office of Lianhua, told local media that Lianhua will speed up expansion in eastern China this year and currently they are inspecting such eastern cities like Suzhou and Kunshan and will soon focus on opening convenience stores in these regions.